This question is an unfortunate one, but it happens sometimes when it comes to home buying. It can be especially scary if you’re only DAYS away from closing on your home. This was the scenario for one Missouri woman in a private Facebook group run by ReMax, called First Time Home Buyers (the inspiration for this post). In her heartbreaking post, she stated her home loan was canceled after underwriters stated the HOA fees were over the loan’s allotted DTI. This dire scenario played out only SEVEN days before she and her husband were to close on their new home. But instead of assisting the situation, her lender didn’t have time for her dire situation as their apartment lease was up. She and her husband were left without a home as they had to start the house-hunting process over with a NEW lender. During the process, they had given the seller an earnest money deposit. Now, they must work on trying to get it back. This came to be a nightmare for any potential homeowner, so here are some tips to help if this were to happen to you. Many of these were suggested in the comments on the original thread.

Reading over terms and conditions

When it comes to lenders, you must remember that they are looking out for THEMSELVES, not YOU! Some agents are just another commission, so make sure to look over the terms and conditions with a fine-tooth comb (preferably with a lawyer). Sometimes, there are hidden limits and prohibitions within all the “legalese.”

Renegotiating

If you want to try again with your current lender, you can always try to renegotiate the terms to get a lower rate. This will allow you to have somewhat of a safety net just in case another deal was to fall through.

Finding a new lender

If your situation with your current lender doesn’t work out, a new lender is the best option. To find a lender that fits your circumstances, you can ask your realtor and other homeowners in your circle for recommendations, in addition to searching the internet.This time around, make sure to read over the terms as well as negotiate your rates. When it comes to earnest deposits, you try your hardest to exercise all the possibilities for its return. It’s best to have your realtor on your side from the beginning to have some leverage when scenarios like this do arise. In the end, all things happen for a reason. Hopefully, the lesson you take away from this scenario is always your advocate when it comes to huge life moments such as homebuying.